Synta Seeing Unusual Options Activity

By Jon "DRJ" Najarian, co-founder of OptionMonster.

Biopharmaceutical company Synta(SNTA Quote) is seeing some unusual options activity a week before presenting at a major industry conference.

OptionMonster's tracking systems picked up a large trade Friday that included the purchase of 3,131 May 12.50 calls and the sale of 3,073 May 7.50 puts for $3.60. The stock has been steadily rising, especially in the last few weeks, and popped 6.28% Friday to $8.80, roughly double its lows of December.

Pharmaceutical stocks have been particularly active recently as the industry undergoes consolidation, and Synta already has a strategic relationship with Swiss drug giant Roche. With a $288 million market cap, Synta could be gobbled up in a single bite.

Another potential catalyst for the stock could be the BIO CEO & Investor conference next week in New York. Synta is scheduled to present at the conference on Feb. 9.